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1

Carol lent a friend $200 for one year. She refused to accept any interest. When the friend paid back the loan, she also gave Carol a $32 silk scarf. What annual rate of interest would the friend have been paying if she had given Carol the $32 in cash?

A)

132%

B)

116%

C)

32%

D)

16%

E)

14%

2

Leo wants to borrow $500 for one year, but he wants to pay no more than $35 in interest. What is the MAXIMUM interest rate per year that he can agree to pay?

A)

35%

B)

17.5%

C)

7%

D)

5%

E)

3.5%

3

At a manufacturing plant, 15 percent of the workers belong to the company HMO. If the plant has 300 employees, how many DO NOT belong to the HMO?

A)

15

B)

45

C)

60

D)

255

E)

285

4

Ernie is training for a marathon. Each month his running time on a 10-mile course improved by 10 percent over the previous month. It took Ernie 1 hour 40 minutes to complete the course the first month. How long did it take him the third month?

A)

1 hour 20 minutes

B)

1 hour 21 minutes

C)

1 hour 26 minutes

D)

2 hours 1 minute

E)

Not enough information is given.

5

Stephen borrowed $500 from a bank and agreed to pay 6% annual interest on the loan for a term of 24 months. How much money will he have paid the bank at the end of the term of the loan?

A)

$506

B)

$512

C)

$525

D)

$530

E)

$560

6

What will the month’s finance charge be on an unpaid balance of $450 if the ANNUAL finance rate is 14.4%?

A)

$4.50

B)

$5.40

C)

$64.80

D)

$455.40

E)

Not enough information is given.

7

Mrs. Harper took out a 2-year loan for $300 at an interest rate of 8% per year. How much did she have to pay in interest at the end of the two years?

A)

$348

B)

$324

C)

$174

D)

$48

E)

$24

8

A radio station received 275 requests for songs. Of those requests, 110 were for a new love song. What percent of the requests were for this song?

A)

25%

B)

30%

C)

35%

D)

40%

E)

Not enough information is given.

9

While Hugh was driving to work, he noticed a sign in a store window that said he could save $120 on a color TV that was specially discounted 20%. What was the original price of the set?

A)

$900

B)

$600

C)

$480

D)

$360

E)

Not enough information is given.

10

Bill bought basketball shoes that were on sale for 20% off. The sale price was $31.20. What was the regular price of the shoes?